Tag Archives | Theorem

The Stopler – Samuelson Theorem | International Trade | Economics

In this article we will discuss about the Stopler – Samuelson theorem of international trade. The H-O theory determined that the labour- abundant country specialises in the export of labour- intensive commodity while capital-abundant country specialises in the export of capital-intensive commodity. The factor price equalisation theory suggested that the trade would lead towards such movements in the factor prices [...]

By Aahana S|2018-03-15T11:34:37+05:30March 15, 2018|The Stopler – Samuelson Theorem|Comments Off

The Rybczynski Theorem (With Criticisms) | International Economics

In this article we will discuss about the Rybczynski theorem of international trade with its criticisms. In both Heckscher-Ohlin theory and the factor- price equalisation theory, the assumption was taken that the factor endowments were fixed. T.M. Rybczynski, published a paper in 1955 to investigate the effect of an increase in the quantity of a factor of production upon production, [...]

By Aahana S|2018-03-15T11:34:36+05:30March 15, 2018|The Rybczynski Theorem|Comments Off